So the Federal Government would be subject to the jurisdiction of the “State of DC?” DC would immediately become the most powerful state in the Union, just by virtue of its ability to tax the Federal Government’s income.
I don’t see how that could work in practice, and for damned sure the other states would have something to say about it!
The federal government has operations in every state of the union but that doesn’t mean the state controls the federal government. My state cannot tax federal property.